Transformers and Rectifiers (India) (532928) Q4 15/16 earnings summary

Executive summary

• FY16 standalone revenue rose to ₹58,140.99 lakh from ₹54,519.23 lakh, while net loss widened to ₹853.54 lakh from ₹645.20 lakh.

• Consolidated revenue reached ₹59,927.45 lakh versus ₹55,641.69 lakh; net loss narrowed to ₹750.72 lakh from ₹803.17 lakh.

• Production was 15,973 MVA versus 15,925 MVA; the May 26, 2016 order book totaled ₹84,555 lakh, led by power transformers.

Financial highlights

• Standalone revenue from operations was ₹57,637.48 lakh versus ₹54,168.54 lakh; total expenses rose to ₹59,394.88 lakh from ₹55,480.04 lakh.

• Standalone EBITDA was ₹3,375.24 lakh versus ₹3,006.80 lakh; finance costs increased to ₹3,280.99 lakh from ₹2,767.30 lakh.

• Standalone PBT loss widened to ₹1,253.89 lakh from ₹960.81 lakh; net loss was ₹853.54 lakh versus ₹645.20 lakh.

• Consolidated PBT loss narrowed to ₹1,013.06 lakh from ₹1,127.69 lakh; consolidated PAT loss was ₹750.72 lakh versus ₹803.17 lakh.

• No dividend was recommended in view of losses; paid-up share capital remained ₹1,325.64 lakh.

Outlook and guidance

• Turnover was expected to grow, conditional on factors affecting the power sector and transformer industry.

• Planned improvement priorities included design upgrades, entry into new markets, product portfolio expansion, efficiency gains and cost reduction.

• Management expected transformer capacity utilization to improve by ~5% overall, while noting that near-term prospects remained subdued.